He filed bankruptcy (chapter 7) at 2010 and has no criminal history and eviction.

Do NOT file eviction without talking to a lawyer who knows about the bankruptcy.

Bankruptcy for instance, retirement accounts are (usually) shielded through that process but when you take the funds out of that account then they become regular capital available to you for any purpose, which makes them subject to the same risks as regular capital.I'm not necessarily against your idea, just wanted to make sure you have all the risks in mind so you have the chance to develop a robust fallback plan. 

One of my candidates has a “7 bankruptcy discharged” in his records from 3 years ago, but he has a credit score of 770, I didn’t think that was possible...

I had a couple of SFRs about a decade ago out of Market (Phoenix) that I lost in an ugly Bankruptcy that was both a blessing and a curse. 

Not too mention we know some of you CRE guys going to file bankruptcy in the next year or so bringing down the bank as well.Even PIMCO is givng up in this market, they rather surrender property to the bank rather than continuing operation.

After all, it's not a rare practie from those who know they are going to file for bankruptcy.

Bankruptcy stops any foreclosure.

However, if you received a banruptcy discharge, and the loan was not reaffirmed in teh bankruptcy case, ASC will only exercis it's right against the property and is not attempting to act to collected the discharged debt from you"

The most common situations when cancellation of debt income is not taxable involve: Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.